The following table presents the activity in the allowance for loan losses by portfolio segment for the year ending June 30, 2013:

1-4 Family

Commercial

Residential

Real

Real

Commercial

Estate

Estate

Consumer

Total

Allowance for loan losses:

Beginning balance

$

143

$

1,283

$

712

$

197

$

2,335

Provision for loan losses

53

212

(35)

107

337

Loans charged-off

(35)

(24)

(64)

(115)

(238)

Recoveries





1

61

62

Total ending allowance balance

$

161

$

1,471

$

614

$

250

$

2,496

The following table presents the activity in the allowance for loan losses by portfolio segment for the year ending June 30, 2012:

1-4 Family

Commercial

Residential

Real

Real

Commercial

Estate

Estate

Consumer

Total

Allowance for loan losses:

Beginning balance

$

179

$

882

$

947

$

93

$

2,101

Provision for loan losses

(36)

336

(171)

186

315

Loans charged-off





(69)

(158)

(227)

Recoveries



65

5

76

146

Total ending allowance balance

$

143

$

1,283

$

712

$

197

$

2,335

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2013. Included in the recorded investment in loans is $546 of accrued interest receivable net of deferred loans fees of $303.

1-4 Family

Commercial

Residential

Real

Real

Commercial

Estate

Estate

Consumer

Total

Allowance for loan losses:

Ending allowance balance attributable to loans:

Individually evaluated for impairment

$

3

$

89

$

243

$



$

335

Collectively evaluated for impairment

158

1,382

371

250

2,161

Total ending allowance balance

$

161

$

1,471

$

614

$

250

$

2,496

Recorded investment in loans:

Loans individually evaluated for impairment

$

51

$

865

$

1,396

$



$

2,312

Loans collectively evaluated for impairment

26,683

126,881

49,780

11,930

215,274

Total ending loans balance

$

26,734

$

127,746

$

51,176

$

11,930

$

217,586

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2012. Included in the recorded investment in loans is $494 of accrued interest receivable net of deferred loans fees of $320.

1-4 Family

Commercial

Residential

Real

Real

Commercial

Estate

Estate

Consumer

Total

Allowance for loan losses:

Ending allowance balance attributable to loans:

Individually evaluated for impairment

$

50

$

82

$

258

$



$

390

Collectively evaluated for impairment

93

1,201

454

197

1,945

Total ending allowance balance

$

143

$

1,283

$

712

$

197

$

2,335

Recorded investment in loans:

Loans individually evaluated for impairment

$

148

$

996

$

1,417

$



$

2,561

Loans collectively evaluated for impairment

22,940

111,352

51,683

9,388

195,363

Total ending loans balance

$

23,088

$

112,348

$

53,100

$

9,388

$

197,924

The following table presents information related to loans individually evaluated for impairment by class of loans as of and for the year ended June 30, 2013:

Unpaid

Allowance for

Average

Interest

Cash Basis

Principal

Recorded

Loan Losses

Recorded

Income

Interest

Balance

Investment

Allocated

Investment

Recognized

Recognized

With no related allowance recorded:

Commercial real estate:

Other

$

65

$

65

$



$

63

$



$



1-4 Family residential real estate:

Owner occupied

125

125



103





Non-owner occupied

56

56



57

5

5

With an allowance recorded:

Commercial

51

51

3

88

8

8

Commercial real estate:

Other

793

800

89

808

72

72

1-4 Family residential real estate:

Owner occupied

283

281

56

298





Non-owner occupied

933

934

187

927

24

24

Total

$

2,306

$

2,312

$

335

$

2,344

$

109

$

109

The following table presents information related to loans individually evaluated for impairment by class of loans as of and for the year ended June 30, 2012:

Unpaid

Allowance for

Average

Interest

Cash Basis

Principal

Recorded

Loan Losses

Recorded

Income

Interest

Balance

Investment

Allocated

Investment

Recognized

Recognized

With no related allowance recorded:

Commercial

$

12

$

12

$



$

22

$

1

$

1

Commercial real estate:

Other

144

144



412

67

67

1-4 Family residential real estate:

Owner occupied

238

238



92

2

2

Non-owner occupied

64

65



59

5

5

With an allowance recorded:

Commercial

136

136

50

100

3

3

Commercial real estate:

Other

851

852

82

813

14

14

1-4 Family residential real estate:

Owner occupied

160

160

13

271

3

3

Non-owner occupied

952

954

245

936

14

14

Total

$

2,557

$

2,561

$

390

$

2,705

$

109

$

109

The following table presents the recorded investment in non-accrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2013 and 2012:

June 30, 2013

June 30, 2012

Loans Past Due

Loans Past Due

Over 90 Days

Over 90 Days

Still

Still

Non-accrual

Accruing

Non-accrual

Accruing

Commercial

$

46

$



$

51

$



Commercial real estate:

Other

86



911



1  4 Family residential:

Owner occupied

295



307



Non-owner occupied

663



663



Consumer

7

2





Total

$

1,097

$

2

$

1,932

$



Non-accrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The following table presents the aging of the recorded investment in past due loans as of June 30, 2013 by class of loans:

Days Past Due

30 - 59

60 - 89

90 Days or

Total

Loans Not

Days

Days

Greater

Past Due

Past Due

Total

Commercial

$



$



$

46

$

46

$

26,688

$

26,734

Commercial real estate:

Construction









2,088

2,088

Other

1,158





1,158

124,500

125,658

1-4 Family residential:

Owner occupied

245



252

497

32,365

32,862

Non-owner occupied





84

84

17,854

17,938

Construction









376

376

Consumer

72

35

2

109

11,821

11,930

Total

$

1,475

$

35

$

384

$

1,894

$

215,692

$

217,586

The above table of past due loans includes the recorded investment in non-accrual loans of $7 in the 30-59 days past due category, $382 in the 90 days or greater category and $708 in the loans not past due category.

The following table presents the aging of the recorded investment in past due loans as of June 30, 2012 by class of loans:

Days Past Due

30 - 59

60 - 89

90 Days or

Total

Loans Not

Days

Days

Greater

Past Due

Past Due

Total

Commercial

$

85

$



$

33

$

118

$

22,970

$

23,088

Commercial real estate:

Construction

202





202

1,345

1,547

Other

82



268

350

110,451

110,801

1-4 Family residential:

Owner occupied

174



178

352

33,766

34,118

Non-owner occupied

43





43

18,753

18,796

Construction









186

186

Consumer



8



8

9,380

9,388

Total

$

586

$

8

$

479

$

1,073

$

196,851

$

197,924

The above table of past due loans includes the recorded investment in non-accrual loans of $43 in the 30-59 days past due category, $479 in the 90 days or greater category and $1,410 in the loans not past due category.

Troubled Debt Restructurings:

As of June 30, 2013, the recorded investment of loans classified as troubled debt restructurings was $1,946 with $245 of specific reserves allocated to these loans. As of June 30, 2012, the recorded investment of loans classified as troubled debt restructurings was $1,973 with $258 of specific reserves allocated to these loans. As of June 30, 2013 and 2012, the Corporation had not committed to lend any additional amounts to customers with outstanding loans that are classified as troubled debt restructurings.

During the years ended June 30, 2013 and 2012, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; a permanent reduction of the recorded investment in the loan; or a temporary reduction in the payment amount to interest only.

During the 2013 fiscal year, modifications completed involving a reduction of the stated interest rate of the loan were for periods ranging from 6 months to 5 years and modifications involving the extension of the maturity date were for a period of 5 years to 10 years. During the 2012 fiscal year, modifications completed involving a reduction of the stated interest rate of the loan were for periods ranging from 12 months to 25 years and modifications involving an extension of the maturity date were for a period of 6.5 years to 25 years.

The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended June 30, 2013 and 2012:

Pre-Modification

Post-Modification

Number of

Outstanding Recorded

Outstanding Recorded

Loans

Investment

Investment

June 30, 2013

Commercial real estate:

Other

1

$

285

$

282

1  4 Family residential:

Owner occupied

1

21

21

Total

2

$

306

$

303

The troubled debt restructurings described above increased the allowance for loan losses by $42 and there were no charge offs from troubled debt restructurings during the fiscal year ending June 30, 2013.

Post-Modification

Pre-Modification

Number of

Outstanding Recorded

Outstanding Recorded

Loans

Investment

Investment

June 30, 2012

Commercial

1

$

85

$

85

Commercial real estate:

Other

2

137

137

1  4 Family residential:

Owner occupied

1

114

114

Non-owner occupied

7

534

466

Total

11

$

870

$

802

The troubled debt restructurings described above increased the allowance for loan losses by $32 and resulted in charge offs of $63 during the period ended June 30, 2012.

There were no loans classified as troubled debt restructurings for which there was a payment default during the 2013 fiscal year. The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within 12 months following the modification during the period ended June 30, 2012:

Number of

Recorded

Loans

Investment

Troubled debt restructuring:

Commercial real estate:

Other

1

$

428

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. The troubled debt restructuring that subsequently defaulted described above did not increase the allowance for loan losses or have any charge-off during the period ended June 30, 2012.

Credit Quality Indicators:

The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans with a total outstanding loan relationship greater than $100 and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a monthly basis. The Corporation uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either less than $100 or are included in groups of homogeneous loans. These loans are evaluated based on delinquency status, which was discussed previously. As of June 30, 2013, and based on the most recent analysis performed, the recorded investment by risk category of loans by class of loans is as follows:

Special

Not

Pass

Mention

Substandard

Doubtful

Rated

Commercial

$

23,886

$

1,236

$

224

$

51

$

1,337

Commercial real estate:

Construction

2,003

85







Other

115,269

4,439

4,073

865

1,012

1-4 Family residential real estate:

Owner occupied

4,083





406

28,373

Non-owner occupied

14,443

1,104

995

990

406

Construction

243







133

Consumer









11,930

Total

$

159,927

$

6,864

$

5,292

$

2,312

$

43,191

As of June 30, 2012, and based on the most recent analysis performed, the recorded investment by risk category of loans by class of loans is as follows:

Special

Not

Pass

Mention

Substandard

Doubtful

Rated

Commercial

$

21,642

$

240

$

14

$

148

$

1,044

Commercial real estate:

Construction

1,353

163





31

Other

98,942

7,332

2,657

996

874

1-4 Family residential real estate:

Owner occupied

4,256



99

398

29,365

Non-owner occupied

14,205

2,197

875

1,019

500

Construction

47







139

Consumer









9,388

Total

$

140,445

$

9,932

$

3,645

$

2,561

$

41,341

The Bank has granted loans to certain of its executive officers, directors and their affiliates. A summary of activity during the year ended June 30, 2013 of related party loans were as follows:

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.